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Oscillators

Bullish RSI Divergence -A case study and future recommendationRSI Divergence refers to the deviation of RSI with respect to price. Even though the price may be going in a set direction (say making lower lows), the RSI could go in a completely different direction (higher lows). RSI is a clearcut indicator of buyer strength or buyer accumulation at a specific given time and price. An RSI Divergence generally is strongly related to change in trend. RSI Divergence can be of 2 types: Bullish and Bearish. Here I shall discuss about Bullish RSI Divergence. In case of Bullish RSI Divergence, the price makes a lower low (in a downtrend) while the RSI makes higher lows (a sort of W formation). This shows that even though the price is dropping, the buyer strength and accumulation is increasing. Please refer the image above for visual example. How to trade? In case of bullish divergence, one should go long with a SL below the low of the present price. In the present case, one can go long in Amaraja with a SL of 660 and for a target of 800-850
AEducation
by tksthathachari
35
#1 RSI(Relative Strength Index)100%Work# WE WILL MAKE ONLY PROFIT #The relative strength index (RSI) is a popular momentum oscillator developed in 1978. The RSI provides technical traders with signals about bullish and bearish price momentum, and it is often plotted beneath the graph of an asset's price. #What Does the RSI Tell You? The primary trend of the stock or asset is an important tool in making sure the indicator’s readings are properly understood. For example, well-known market technician Constance Brown, CMT, has promoted the idea that an oversold reading on the RSI in an uptrend is likely much higher than 30% and that an overbought reading on the RSI during a downtrend is much lower than the 70% level.1 As you can see in the following chart, during a downtrend, the RSI would peak near the 50% level rather than 70%, which could be used by investors to more reliably signal bearish conditions. Many investors will apply a horizontal trendline between 30% and 70% levels when a strong trend is in place to better identify extremes. Modifying overbought or oversold levels when the price of a stock or asset is in a long-term horizontal channel is usually unnecessary. A related concept to using overbought or oversold levels appropriate to the trend is to focus on trade signals and techniques that conform to the trend. In other words, using bullish signals when the price is in a bullish trend and bearish signals when a stock is in a bearish trend will help to avoid the many false alarms that the RSI can generate. #Example of RSI Swing Rejections Another trading technique examines the RSI’s behavior when it is reemerging from overbought or oversold territory. This signal is called a bullish “swing rejection” and has four parts: 1. The RSI falls into oversold territory. 2. The RSI crosses back above 30%. 3. The RSI forms another dip without crossing back into oversold territory. 4. The RSI then breaks its most recent high. As you can see in the following chart, the RSI indicator was oversold, broke up through 30% and formed the rejection low that triggered the signal when it bounced higher. Using the RSI in this way is very similar to drawing trend lines on a price chart. IF YOU NEED ANY HELP JUST COMMENT OR MESSAGE M😊😊
NSE:BANKNIFTYEducation
by UnknownUnicorn22712522
37
📉 Your Ultimate Guide to RSI Divergence (Settings & Tips) 📈 Hey traders, Relative strength index is a classic technical indicator . It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change . Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tip s: 💠First of all, let's start with the settings . For the input , we will take 7/close . For the levels , we will take 80/20 . Then about the preconditions : 1️⃣ Firstly, the market must trade in a trend (bullish or bearish) with a sequence of lower lows / lower highs (bearish trend) or higher highs / higher lows (bullish trend). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence . A strong counter-trend movement will be expected. Also, I should say something about a time frame selection . Personally, I prefer to apply it on a daily time frame , however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal. ❤️Please, support this idea with a like and comment!❤️
Education
by VasilyTrader
3
divergence set up - some basic learningwhat is Divergence ? 👇 Divergence is when the price of an asset is moving in the opposite direction of a technical indicator, such as an oscillator, or is moving contrary to other data. Divergence warns that the current price trend may be weakening, and in some cases may lead to the price changing direction what is Oscillator ? 👇 An oscillator is a technical analysis tool that constructs high and low bands between two extreme values, and then builds a trend indicator that fluctuates within these bounds. Traders use the trend indicator to discover short-term overbought or oversold conditions. how is Oscillator used in Trading ? 👇 Oscillators are chart indicators that can assist a trader in determining overbought or oversold conditions in ranging (non-trending) markets. Most traders use multiple oscillators to confirm range extremes and for determining the important entry and exit points. 🛑Indicators for spotting the divergence indicator patterns are the Awesome Oscillator, macd, the RSI, CCI or stochastic.🛑 disclaimer - personal view (can be wrong)
Education
by sankhyainvestments
13
TI ==> Indicator in SBIN NSE In the above picture, you can see the area of the overbought area. but the Aroon didn't indicate that not a problem because TI and RSI indicate the overbought this is my idea: I use a different template in that TI indicates scalping and intraday trades. but it has a problem it can show the overbought. but it will not easy to understand so you can use ADX also here. but I use RSI for clear information many people use MACD but TI is better than MACD because it can also show convergence and divergence of stocks. TI is my own script but it covers more INDICATION. this is my template: volume, Aroon, RSI and TI I use aroon for a very little support only. I recommend you a statergy of paper trade with a overbought indicator(I recommend RSI), Moving Average related indicator(eg:MACD,DMI)(I recommend TI my own script) and your favourite Indicator that is your choice because it is useful for your trading it can be a dummy indicator also but your favourite Indicator. comment for doubts..
NSE:SBINEducation
by tharunkumarmuthu
Gold Spot / USD Dollar(Gold Shining Fading in May)?Gold Spot / USD Dollar (Gold Shining Fading in May) (Gold “The Light Had Faded and Dusk was Advancing) • Gold Spot The Shining of Gold is Fading now means the Light had Started Fading now and Dusk was Advancing in Gold Slowly in the start of Month of May and Will Continuous will go for entire Current Month • Three Time Gold Tried for New Break out from the upper Channel but Unable to do the same • Continuous Rise in the Upper Channel • Volumes Started Decreasing • Momentum also Decreased in the last 10 Sessions • Let See If Equity will Rise Subject to if Slowly Lock downs Will Start Releasing the effect will see on Gold on Negative Side • If Lock downs Opens Slowly then Economy and Industries will rise which will impact Gold Negatively and His Shine will start fading off • Let See? (Finally if you liked the Idea pls provide likes and comments and pls provide suggestion if you something dont like about the idea )
OANDA:XAUUSDEducation
by Ashhish-Chhabra
How to identify Hidden divergence with the help of RSIThis example is bets suited for RSI hidden divergence. We all know double bottom or double top RSi divergence to identify trend reversals. But with the help of Hidden divergence we can find out trend continuation. Lets start !! - On 18 April stock is traded 411 and RSI shows the 51.29 reading . - But it break the support level and fall further. - it again renounce back to 411 level but this time RSI shows 68 levels which close to overbought region . - At present condition we have resistance level 412 also. - So we can Short it with the stop 412 on closing basis . Only Condition is stock has to be in same trend Down or Up See the Past example
NSE:DABUREducation
by b1Chetan
8
APOLLO TYRES || ON A TRICKY TERRAINApollo Tyres on a weekly chart has taken support at levels of 192-193 and has bounce back giving a divergence on the RSI from a oversold region. The MACD also is showing convergence. A major part of the move has already taken place from 193 to 220. What needs to be seen is as to how far would this upward move go with Fibonacci retracements placed at 224.5, 235 (for move from 244.85 to 193). Interestingly 235 was the level from which it gave way and move towards 193 and so it needs to be seen as to how does it behave at those levels. Would be taking a back seat and seeing as to how far would it go before turning around. I would appreciate if someone can put a number to the move and back it up with their explanation on the same.
NSE:APOLLOTYREEducation
by thechama3
4